Is AIG More/Less Risky To Investors Than Its Two Competitors American International Group, Inc., through its subsidiaries, engages in a range of insurance and insurance-related activities in the United States and internationally. The company operates in four segments: General Insurance, Life Insurance and Retirement Services, Financial Services, and Asset Management. It also provides insurance-related services, such as adjusting claims and marketing specialized products. American International Group was founded in 1967 and is based in New York City. The closest AIG competitors are Allianz AG and AXA. INSURANCE COMPANIES RANKED BY SALES Company Symbol Price Change Market Cap P/E Allianz AG AZ 16.52 0.00% 66.79B 14.00 ING 40.20 0.00% N/A N/A American International Group Inc. AIG 65.01 0.00% 168.83B 16.29 AXA AXA 36.90 0.00% 67.75B 13.37 Even though AXA is a leader in revenues, AZ has greater gross margin and higher earnings before interest, taxes, depreciation and amortization .
AIG, however, has reached almost a double net income of AXA and AZ, which also makes it a leader in P/E. As we can see, AIG also demonstrates the best PEG (5 years expected) ratio, which means AIG price will be appreciating much more than its competitors. DIRECT COMPETITOR COMPARISON AIG AZ AXA Pvt1 Industry Market Cap: 168.83B 66.79B 67.75B N/A 1.22B Employees: 97,000 177,625 76,339 53,2461 943 Qtrly Rev Growth (yoy): 0.60% N/A N/A N/A 6.20% Revenue (ttm): 106.90B 120.54B 128.75B 59.68B1 948.34M Gross Margin (ttm): 12.35% 18.24% 14.24% N/A 19.02% EBITDA (ttm): 15.40B 23.45B 6.69B N/A 78.16M Oper Margins (ttm): 12.35% 18.24% 5.12% N/A 13.90% Net Income (ttm): 10.48B 4.65B 5.26B 2.59B1 38.43M EPS (ttm): 3.992 1.18 2.76 N/A 1.60 P/E (ttm): 16.29 14.00 13.37 N/A 14.14 PEG (5 yr expected): 0.89 2.84 2.13 N/A 0.96 P/S (ttm): 1.58 0.55 0.53 N/A 1.11 Fortune 500, in 2006 has ranked AIG as number 9 in its annual ranking of America’s largest corporations. Allianz and AXA are not even in that list. According to Wharton Business School of the University of Pennsylvania, investing into AIG can be almost as risky as investing into Enron has been. Both companies, at the first sight, are/were prosperous, showing very good results.
The Essay on Insurance Fraud Company Million
Insurance fraud - whether committed by sophisticated criminals, otherwise honest consumers, or by insurance company employees and owners - is an increasingly expensive burden on the U. S. economy, taking money out of the pockets of all citizens. This illegal activity diverts vital resources away from businesses, law enforcement, the civil justice system, regulatory agencies and local emergency ...
A closer look, however, might reveal several not-so-pleasant details: last years scandal involving Maurice Greenberg, for example, when important documents simply vanished from AIG headquarters office. Yet another case involved $300 million in income AIG improperly claimed for selling outside investors covered calls on bonds in AIG’s portfolio. Covered calls are supposed to give their owners the option to buy bonds at a set price for a given period, but AIG used other derivatives transactions to assure it could retain the bonds. Judging from the above information, it can be said that AIG bond is probably more risky than Allianz and AXA. Despite its great net income results, PEG, P/E, P/S ratios, it is clear that theres much going on under the table in AIG. Bonds are long-term securities with a maturity of greater than one year, so AIG bonds should offer a higher discount rate, than its competitors do. Investing in AIG can be profitable for risk-taking investors, as potential profit after a bond matures can be higher than Allianz and AXAs. Sources: Accounting for the Abuses at AIG, Posted by Knowledge @ Wharton on Apr 7, 2005 http://www.srimedia.com/artman/publish/articles/ar ticle_895.shtml http://knowledge.wharton.upenn.edu http://money.cnn.com/magazines/fortune/fortune500/ full_list/ Yahoo Finance, AIG company profile: http://finance.yahoo.com/q/pr?s=AIG.
The Essay on What Problem You May Have Funding A Product Line In Aig
What problem you may have funding a product line in AIG American International Group, Inc. (AIG) is considered to be one of the major insurance corporations in the world. It was founded in 1919 by Edwin Cornelius Vander Starr in Shanghai, China and became the first western company that sold insurance to the Chinese. Later, the company enlarged the geography of its business and then extended the ...
